Sporting chance of a World Cup boost to business
May 12 2010 by Peter McCusker, The Journal
With the start of the World Cup just a month away, Peter McCusker looks at the hopes for the North East economy and for businesses.
AFTER England won the World Cup in 1966, industrial production rose dramatically as a happy workforce beavered away while basking in the reflected glory of the 4-2 triumph over Germany.
Now a new report shows that one in five adults in the North East believes an England World Cup win in South Africa this summer could help boost the nation’s recovery from the recession.
In the PricewaterhouseCoopers (PwC) survey of 2,000 UK adults, men showed more faith in the boost that football would bring with 25% answering favourably, while only 13% of women agreed.
Paul Woolston, senior partner, PwC in Newcastle, said: “Winning a global sporting tournament such as the football World Cup has a significant impact on domestic consumer discretionary spend and therefore GDP.
“While we are technically out of recession, such a boost in national morale and international brand perception would aid recovery.
“A strong performance by a national team creates a long-lasting feelgood factor. A successful campaign unites a nation in pursuit of a goal greater than their individual needs, instilling pride and self-confidence.”
The PwC survey indicated that 26% of consumers in the North East intend to buy more if England win the World Cup in South Africa – specifically on following football, celebrating in pubs and restaurants, and treating themselves to new purchases (clothes, household goods, etc).
Bill MacLeod, partner and North East retail leader, PwC, said: “Our consumer research findings are consistent with a number of academic research studies which demonstrate that after periods of footballing success, there is a systematic rise in average attendance at club level in the respective countries.
“Such major events also help to drive sports participation. For example, in Australia 12 months after the Sydney Olympics, those sports where the host country had experienced success also demonstrated increased an uplift in participation.”
According to the same PwC poll, 17% of adults in the North East envisage spending more time in the pub if England win the tournament – suggesting an increase in activity for pubs, bars and restaurants this summer.
Even an England appearance in the later stages of the tournament would send hordes of people to the pub or the supermarket in order to watch at home with provisions.
Andrew Sugden, director of membership and policy at the North East Chamber of Commerce, agrees. He said: “With 64 games of football, the World Cup in South Africa will be a real boost for bars and other venues choosing to show the tournament.
“There will also be plenty of homes kitted out with a new telly for the occasion. Plus, we know that when England do well business productivity gets a boost.
“Add to this those us who will have a flutter on the result, and the tournament should be a boost for British business.”
